1. Stephanie Ma, Anirudh Ojha, Kelly Zdrowak, Hui Ting (Wendy) Wen, Michelle Zhou

3. New Product & Product Class Market
The Fitbit Charge 2 launched August 29th, 2016
Product Description:
Make every beat count with a fitness wristband built with PurePulse® heart rate, multi-sport modes, guided breathing sessions & interchangeable bands.
Product Class:
The Fitbit Charge 2 is in the product class “Fitness Trackers”
Price:
$150 (£130, AU$250)
Geographic Region
The Fitbit Charge 2 is sold all over the world.

4. Insights into the Competitive Dynamics
Estimated Market Size: Whole Market : 78.1 million units (2015)
Estimated Fitbit Market Share : 21 million units (27% market share)
Estimated Fitbit Growth Rate : 13.1%
Last quarter, Fitbit raised its full-year revenue guidance from 29%-34% growth to 34%-40% growth. That was encouraging, but it still represented a steep slowdown from 149% sales growth last year. Fitbit is also highly exposed to Brexit -- about 12% of Fitbit's sales come from Europe, and its most established market is the U.K.
Fitbit expects non-GAAP gross margins between 48.5%-49% for 2016, which would be comparable to its gross margin of 48.5% in However, rising operating expenses are expected to weigh down its non-GAAP net earnings, which are anticipated to rise just 5% to 16%. Comparing that estimate to Fitbit's forward P/E of 10 suggests that the stock isn't significantly undervalued relative to its earnings growth potential.
2. Rising competition
Between the first quarters of 2015 and 2016, Fitbit's share of the global wearables market fell from 32.6% to 24.5%, according to IDC.

5. EST. CURRENT MARKET SHARE
Our Competitors...
EST. CURRENT MARKET SHARE
PRICE RANGE
(USD)
PRODUCT POSITIONING
XIAOMI
12 million units
(15.4% market share)
$12.00-$25.00
Cheaper Alternative
APPLE
11 million units
(15% market share)
$ $1,300.00
Luxury
GARMIN
3.3 million units
(4.2% market share)
$80.00-$250.00
Navigation
JAWBONE
(29.5% market share)
$50.00-$250.00
Innovative Technology
SAMSUNG
3.1 million units
(3.9% market share)
$ $200.00
Customer Value

6. Substitute/Complements
Subsititues:
Smart Phones (e.g. Iphones, Samsung Note and Galaxy, etc.)
Watches (e.g. Apple Watch, Samsung Gears, Jawbone’s UP, etc.)
Heart Rate Monitor
Complements
Smart Phones (e.g. Iphones, Samsung Note and Galaxy, etc.)
Computers (e.g. Macbooks, Sony, etc.)

7. All-In-One Fitness Wearables
Distinctive Trends
All-In-One Fitness Wearables
Step 2
Step 3
Online Fitness
New Home Cardio Option

8. Maslow’s Hierarchy of Needs
Esteem
The FitBit represents a lifestyle of high accomplishment and a specific social status with a trendy product.
Leveraging their understanding of technology to create a sense of belonging. Purchasing a FitBit allows consumers to join a health and fitness community.
Social

9. Major product attributes in the market
Brand
Compatibility
Design
Price
Reliability
Consumers’ perspectives and expectations of the different brands in the market has a huge impact on which brand is purchased.
There are many smartphones brands on the market, but not all are compatible with the fitness trackers available.
Sleek design, variety of colors, high durability and lightweight designs.
Fitbit Charge 2 costs $ while the Apple watch prices start at $269 or Samsung Fit2 costs $
Features such as heart-rate monitoring, counting steps, and assessing sleeping patterns should be accurate.

10. Differentiating With Ads
Ad displays main two features consumers have been asking for:
PurePulse Technology
The original Fitbit charge did not calculate heart rate correctly.
Other competitors have similar issues as the original fitbit
Spent years developing PurePulse technology to ensure accurate heart rate monitoring
Larger Screen
Other Fitbit models don’t have.
One of the biggest complaints amongst consumers for other models
Amazon Customer Review: Fitbit Charge HR Wireless Activity Wristband:
“The product does not capture heart rate accurately, despite referencing their online user guide as instructed by customer service in order to ensure proper wear and usage.”

11. Evaluation of Fitbit Charge 2
The Fitbit Charge 2 offers a variety of new features and benefits for consumers.
Fitbit Charge 2 connects to your phone so you can use it as a GPS while you are running or walking.
Multi-sport tracking enables the band to be able to identify whether you are walking, running, or lifting weights for more accurate fitness recordings.
Customize the color with interchangeable wrist bands. Other competitors have, but other Fitbit models don’t. Consumers prefer this benefit.

12. Future Trends in the Fitness Trackers Market
Real-time tracking of what we eat
Real time food consumption tracking
Automatic calorie counting
Focus on Physical Health
Blood pressure monitor
Oxygen level of blood
Emotion and Stress
Measure stress levels
Analyze biosignals to measure emotions
Ingestible Fitness Trackers
Pill sized trackers
‘Smart Pill’ by Jawbone

13. References